Plastic collection for recycling can generally be termed the “diamond in the rough” that hasn’t been found by the majority. While a couple of people have realized the potential in plastic recycling, many still remain unaware. In a previous article talking about the “Top Three Recycling Business Ideas and Opportunities In Nigeria”, plastic recycling came up on top because of its extreme and proven viability in Nigeria and many other parts of the world.

While a lot of people are actively involved in plastic recycling, they face a major challenge; an adequate startup capital. The startup capital for running a plastic recycling factory is on a high end. It’s estimated to cost about 25 million Naira ($84,000) to set up a plastic recycling factory. This cost is extremely high for the common man because of the cost of building the factory, purchasing the recycling machines, and many other factors. But around every problem, there’s a solution or two lurking around the corner. Rather than setting up a plastic recycling factory, recycling businesses are springing up that focus majorly on the collection and distribution of plastic bottle wastes to plastic recyclers. This opportunity pays off greatly for many businesses that want to venture into full time plastic recycling on the long run. If your business starts with collecting plastic bottles, you could be on your way to owning your own recycling factory with dedicated hard and smart work.

Before you start your collection of plastic bottle recyclables, you need to know what type of plastic bottles are majorly used, what processes the plastic bottles go through before the final sale, the recycling machines that are used, and a lot more important facts.

This plastic recycling business plan for the collection and supply of plastic bottle recyclables, would give you a broad insight on what it takes to start collecting plastic bottles for recycling.

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Here is the plastic recycling business plan with steps to fully setting up a profitable plastic recycling collection business:

Step 1: What type of plastic bottles do recycling factories require?

Polyethylene Terephthalate (PET) is the answer. These are the common plastic bottles that you see on a daily basis. Examples of these are soda and water bottles like the coca-cola plastic bottles, pepsi plastic bottles, most bottled waters, and many more. PET bottles are majorly used because, they are the easiest to recycle. Their recycled by-products can be used to make life jackets, bags, ropes, furniture, combs, car bumpers, and of course, plastic bottles. There are also other types of plastic bottles that can be recycled, but PET bottles are the most popular plastic bottles that are recycled in Nigeria.

Step 2: How can I find plastic bottles for recycling?

There are various channels to acquire plastic bottles:

1). You can get plastic bottles by building small metal trucks and leasing it out to individuals that’d push the trucks on a daily basis:

These individuals would move from place to place to pick up plastic bottles on the streets, then drop them in their trucks. When they’ve picked up so much for the day, they would reconvene at your recycling dump site to weigh what they’ve collected and get paid for it. Usually, they are paid 20 Naira per kilogram for everything they deliver for the day. So if they bring back 25kg, they’re paid about 500 Naira ($1.6). This means if they can turn in 1000kg (one ton) a day, they’d get paid subsequently with the right adjusted calculation. This fee is a standard in the Nigerian plastic recycling industry. A perfect example of a recycling company that uses a similar method is Wecyclers. They use something they call Wecycles to pick up plastic bottles from households and the likes.

2). You can get plastic bottles from event centres:

After every occasion and event, lots of plastic bottles are always littered around. You could make a good deal by talking with the cleaners, security staff, or the event organisers themselves to either give you their plastic waste for free, or sell them to you for a small fee.

3). You can get plastic waste from restaurants and fast-foods:

With thousands of restaurants and fast-foods scattered all across the country, there’s an abundance of plastic bottle wastes to be collected daily. Strike deals with the cleaners, and they would store and sell the plastic bottle wastes to you for a little personal extra cash at the end of each day.

4). You could pick from public dump sites:

Dump sites by far have the largest collection of plastic wastes. But beware of the cabals at the dump sites. They control everything from the pickup to the payments. This collection method was saved for last because, although it has huge potentials, the politicking behind getting the plastic wastes from any dump site in Nigeria might not be worth your time.

There are many other intelligent means to get plastic wastes like offering households incentives to store their plastic wastes for your collection business, and many more. Get creative and explore several other channels for collecting plastic wastes no one else has explored.

Step 3: Now I know how to get plastic bottle wastes. What next?

Next you need to consider transportation and many other factors. Transporting the plastic bottle wastes from various pick up sites to your personal dump site, and finally the recycling company’s factory, also carries its own cost. Transportation could reduce or completely eliminate your potential profit if not handled well. But hey, there’re ways to still transport and make huge profits. These methods have to do with what happens to the plastics when they get to your dump site before transportation to the recycling factory for sale:

1). If you sort and clean the plastic bottles before you deliver it, the amount you’d be paid goes a little higher.

2). If after sorting, you use a baling and cutting machine to compress the plastic bottle wastes to smaller sizes, you’d be paid even more for the recyclable delivered to the recycler for sale.

3). If after baling, you use a grinding machine to grind the baled plastics, your selling price goes even higher.

So let’s do the math. Let’s say you gathered one ton (1000kg) of plastic bottle wastes and prepared it for sale to a recycling factory, here would be your return on investment per level:

1). Without sorting and with sorting could be around 25 to 30 Naira per kg which would amount to about 25,000 to 30,000 Naira ($83.4 to $100). When you put in the cost of collecting the plastics, transportation, and more, you could make not more that 5000 Naira ($16.7) in profit or a terrible loss. If you sell ten tons (10,000kg), your revenue would be between 250,000 to 300,000 Naira ($834 to $1000). At this stage of plastic recycling collection and sale, what would determine if you turn in a profit would be how you handle expenses; especially on transportation.

2). If after sorting, you bale or grind, you could be paid between 65 to 75 Naira per kg. This would mean you’d make about 25,000 Naira ($83.4) more in profit per each ton (1000kg), than when you simply collect and sort. If you handle your expenses well, you could earn more than 25,000 Naira ($83.4) per ton in profit. Tracking your expenses is crucial to your success. Here is an article that will teach you why small businesses fail and how to overcome it.

Baling or grinding means if you deliver 10 tons (10,000 kg) a week, you’d make at least 250,000 Naira ($834) in profit every week. From all indications, baling and/or grinding is the right way to go. A little challenge here is the cost of the baling and grinding machine. The cost of an average baling machine on Alibaba is between $3000 to $8000.

3). After you’ve baled and/or ground, you’d need to transport your final products to the recycler. Find the cheapest and most effective transporter you know to assist with the transportation of your plastic bottle recyclables to the recycling factory for sale. It’s even better if you own a truck that can handle this for you.

With this plastic bottle recycling business plan for a collection & distribution business, you can better easily get started. Visit local plastic bottle dumpsites in your city to see how it all works. This would fully prepare your mind for the task ahead. With the right tools, hard & smart work, and a solid distribution network, you’d be on your way to growing a successful business from sourcing plastic bottle recyclables.

NOTE 1: The exchange rate in this business plan is calculated based on the value of a Naira to a Dollar at $1 to 300 Naira.

NOTE 2: It’s important you register with local waste management and recycling organisations like LAWMA (Lagos Waste Management Authority) to receive special benefits, and to also ensure you’re not violating any local laws.

I Want To Start Or Learn Plastic Recycling (Collection) Like A Professional. Is There A Book With A Comprehensive Step By Step Guide?

With the growing volume of plastic wastes in various cities around the world, the need to effectively manage them is becoming more important with every passing day. Luckily, the plastic recycling industry has shown great prowess, both in the collection, distribution, and recycling of plastic wastes.

In the light of the lucrative opportunities in the plastic recycling industry, The StartupTipsDaily Team has taken out time to prepare a robust plastic recycling eBook on how anyone can start and grow a successful plastic recycling (collection) business.

This e-book is perfect for beginners, as it will take you from a novice to a plastic recycling (collection) professional, and help you either make money by starting your own plastic recycling (collection) business, or by becoming a plastic recycling (collection) consultant.

You can follow the link below to learn more and purchase one for yourself.

About Stan Edom

I'm an entrepreneur with an expertise in supply chain management, small business development, e-commerce, internet startups, and agriculture. In my spare time, I'm always trying to solve problems people face in their everyday lives with tech.

Thank you for the great – practical – information. Your estimate of start-up costs for a recycling factory surprised me though, and got me thinking. I had envisioned them being higher.
Which makes me wonder if a well thought out business plan might entice a well known global company to invest the money for start up, even if it is just for their own promotional purposes. A win-win situation. 25 (or even 50) million Naira is less than they would pay for a television ad, and the good press they would receive by creating jobs and improving the environment in Nigeria would be more than worth it. Any thoughts?

The proposed model to promote a company’s own product by running a recycling company could definitely work. But before this can be done, four factors have to be considered:

1). The product been promoted has to be a version of a product that’s not just important, but is also used in the recycling industry locally.

2). The items been recycled to, must be items popularly bought by multiple resellers in Nigeria. For instance, recycling companies that manufacture polythene products from recyclables in Nigeria, turn in high revenues.

3). The location and size of the recycling company has to both be in a frequented environment where a lot of market traders and buyers ply, and the warehouse been used for the recycling company must be very obvious. This will make word of mouth go around fast.

4). Partnering with popular social-centric recyclable collectors that promote their positive social effects to the economy can be a good way to build some credibility. Around their campaigns, a model could be created to build a demand for the company’s products.

So yes, a good recycling business plan for the Nigerian market can be a great way to market the company’s products if the execution is carried out right.

Also, some of these machines can be constructed in Nigeria. By taking a trip to Oyingbo in Lagos or some parts of Owerri, you can get more information on constructing small affordable recycling machines for your factory.

I am interested in PP/PE and PET plasctic recycling . Could you send me the capacity and features of the machines you have. Let me also have your address so i could possible visit your showroom. Thanks.

Thank you very much Sir, i live in Abuja and I want to start the collection of the plastic bottle, do I have to bring it to Lagos before I sell? Or is there any factory in Abuja? Help me please I really want to start the business. Please give me your number. Thank you.

I’m not familiar with the Abuja recycling environment. But what I’ll advice is you do a google search on “recycling companies in Abuja”. Also, visit the local waste management companies in Abuja to see if you can get a list of recycling companies registered with them.

Do this, and I believe you’ll get good intel on where to sell your recyclables in Abuja.

That,s a nice one. I love your business appraoch. Many don,t know on the waszte materials because they thought it is dirty business. But to be sincere with you. It is a very lucrative business that generate future benefit if you are not lazy. With God on your side you will really make. I bet you.

Really enjoyed this article, well detailed and very comprehensive. I have always wanted to start a recycling outfit, start small and see where it goes. Been giving serious thought to it, however a constraint i am having is where to sell the gathered plastics to? Google hasn’t been of much help.
Any ideas on companies that would buy, would be really really helpful. I reside in Lagos

Nugget and snippet information you have there, I secretly wish it should not grind to a halt. As a recent graduate, I see this as a business opportunity one can delve into, please I need to know the prices of bailing and/or grinding machine, where can I get it in SW.

A google search will give you cost estimates based on Alibaba’s values. Machinery is usually a lot cheaper when you deal with a Chinese manufacturer. But there are also spots in every country where they manufacture them. An example is Oyingbo in Lagos Nigeria. Outside Nigeria, you’d have to make a geo-specific research.

Thank you so much for the info you dropped. An investor I am willing to work with just constructed its plastic and nylon recycling plant here in Abeokuta. The machines have been test run and every worked perfectly well from the extrusion or pelleting machine to wet grinder and washing/drying machine etal. All necessary amenities has been provided from suppying electricity to outdoor generator. I mean nothing is stoping the pilot plant from starting operations. The only thing keeping it from taking off is all the machines were locally fabricated and the management are afraid of how to recoup its investment and profits. They are requesting for machinery manual and ways the recyclables could be market with a bench mark of 20 tons a month for a start.
Please I need your assistance on these above. I wouldn’t mind a private mail please. God bless you.

Before you draft a manual for the machines, pay a visit to the manufacturers and ensure you get an accurate information on the longevity and effectiveness of the machines.

Concerning hitting a benchmark of 20 tons a month, you need to first identify what by-products you want to produce through the recycling factory. The type of items produced and the location of the factory is critical to it’s success. If it’s close to a market, then you’re on a good start because, word of mouth can get out faster. Also find some staffs of other recycling companies to know how they handle their sales and customer acquisition. Be indirect but friendly in your approach. That’s the only way you’d get real feedback. Getting information from a staff that once worked in a similar recycling factory is easiest person you can get information from.

I think the start-up estimate is too high. You are thinking Factory-size which means you have to ‘go big or go home’.

The needed input may (will) not be met on a daily basis which will mean the facility and equipment will be under utilized. An added tip is to look at the area you are setting up and find out how much waste (Plastic waste) is generated. And if you are doing small scale collection it is important to find this out.

Gladdened by your input especially by your deciding to let us know there could be light @ the end of the Tunnel no matter how small it is.
Please Anna if you will, am sure we would like to know what your estimate to start small would be.
Looking forward to hearing from you.

Wow, thanks very much, this is very inspiring and exciting. How I wish it is as easy as you make it look. The bailing machne will be great in reducing the size of of the bottles, hence the vehicle can transport more of the bottle most especially in environment where there is no recycling company nearby. In the east and south of nigeria, I don’t know of any such companies. Do u know any?

Hope you are doing great. I stumbled on your writeup concerning recycling and i’m glad that someone was able to share this idea. God bless.

I have some questions though i tried mailing but it kept bouncing. First, it seems quite expensive but you make it sound like its not. Whats the rough estimate needed to start the business if one is to use the locally made grinder? I fgured about N900k to purchase from Alibaba which is a lot!

How does one get a dumping site?

Is it a business that one can go into by just hiring people or is it better one operates the business himself?

Your write up on plastic waste recycling business is quite interesting and insighting. i am interested in investing in this business opportunity. Could you assist to obtain a feasibility study on the waste plastic recycling involving bailing and grinding. i already have a land i can use for the business.

Judging by your post, it is obvious that you aren’t a beginner in the business. Kindly send your cell phone number to my email address: statemanui@gmail.com to see if we can do business together. You can also reach me on 08134554734. Thanks.

Just receive termination letter from a company Iam working with iam 58yrs,now and want start the plastic business with the small money giving to me by the company what iwant from you where can I sell the recycle product either in ibadan or lagos the recycle plant will be in oyo state

I have read several of your posts, even before the official announcement of the recession. You sure are adding value to anyone who takes time to read the information you freely make available. Well done and well done again!

thank you mrs. Stanley for such a sacrifice to improve humanity and eradicate poverty. You have really encourage me alot in my choice of academic field.I think this business is part of the things seen in polymer and textiles engineering. plz sir if there are other things I need to know to help update my mentality and interest towards this choice of course pls do help share with me and other lovers of this article. thanks once again

Thank u very much sir for taking your time to explain what it entails in venturing into recycling business .But,I want dnt understand is where I can drip d bottles & oda items. Is it with lawma?
Secondly, di I need to register with them b4 bringing in d aforementioned items?
Thirdly, is there no cheaper machine one can use to venture into this business ?
Thank u very much sir. God bless you sir.

OMG i just graduated this year and i’ve been looking for something to do, i love what i just read and am interested. but my envisioned challenge would be getting the plastic toa recycling plant. i mean, i stay in anambra state and the only recycling plants am hearing of is lagos. any solution??

i,
my name is olawale babatunde and i just came across the idea of plastic business. i reside in lagos but i have a plot of land in iju area of ogun state(after winners church)where i can start plastic crushing business. My crushing machine has been built but the generator to use is yet to be purchased.

i have contacted few people on buying and selling of the products but i need more informtion as there is no money to waste in this time of recession and i dont want people to take advantage of me being a beiginner.

Kindly help out on some tips and ways to go about plastic crushing business.

they (the collectors) are paid 20 Naira per kilogram for everything they deliver for the day. And Without sorting and with sorting could be around 25 to 30 Naira per kg.
From all indications, there is no profit for the those that don’t do baling.
Beacuse considering the cost of transportation from dumping site to recycling sight. And d cost of other materials purchased. It could just be a charity work. Please give me clue about how it goes.

Is there a locally made baling machine for plastics,cans and cardboard papers. I have just limited cash to pay the collectors and possibly the dumping site and security personnel to help watch over the collected waste. Please your advice and most especially a success story will go along way.

the business is very lucrative here in south south because of the abundant of waste littered everywhere
I just started collection of cans of aluminum and from every indication it worth the effort instead of been jobless and complaining 5 sacks full to the brim and counting
but would like to start also collection of clean pet bottles but would need buyer anyone who stays in South south region can whatapps me on 08151164299 let me start collecting for the person
THERE IS WEALTH IN WASTE

Well done on your work. Please I want to start a PET grinding or PWS recycling outfit here in Benin. Small scale, I already have a recovery hub and have registered residences to collect these waste. please what do I need,? Are there companies in Onitcha that will buy? Thank you.

Hello Sir,
Thanks for the load of info being dished out here. I have quite some scraps of alumunium cans (malt, fanta , coke etc.) and water plastic bottles. Do you know any company in Port Harcourt or Aba that will be interested in buying from me?

Hello bro, thanks for these article, it has a lots of light.can you send your phone contact for further communication. I will like to have the e-book,and I have a lot of access to the recycling product but I need a lot of guide to pull through. The locally made grinding machines how good are they?

Mr Stan, thanks for this wonderful write-up. I have gathered lots and lots of PET and some other materials but I haven’t been able to get buyers yet. Is there an area or a directory for scrap buyers in Lagos? Thank you sir

Hello Stan, the information you have put up here is amazingly educative and insightful. Thank you for this selfless service. I am blessed by this piece and I will make sure your website is most visited via my referrals.

Thanks for the wonderful write up. Please do you have an idea of how much it cost to set up used beverage can recycling business in Nigeria.
Also compared to pet bottles which is more profitable. Thanks

thank you very much sir,this post is a life saver.please i want to start collecting pet bottles and sachet nylon and in turn take it to recycling factory.i want to know if i need to register before vi can i sell this waste products to interested factories and also for now i just want to collect and sell until i can save money for baled machine.your quick reply will be appreciated greatly.thank you sir.

thanks for this arthicle, its realy helpfull. i am planing to start my recycling company in ABUJA, at PAIPE this february and i will be available to crush and buy sorted pet bottles, plastic chairs asone other crushable plastic (any colour). for more info you can contact me on my number, 07065054263